Canadian Wood Pallet and Container Assn. warns US tariffs would harm supply chains, raise consumer costs; CWPCA urges US to permanently recognize all wood packaging as Instruments of International Trade, regardless of ownership or load status

May 5, 2025 (Targeted News Service) –

By Jaymar B. Talang

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com

WASHINGTON , May 4 -- The Canadian Wood Pallet and Container Association (CWPCA) has strongly cautioned the U.S. Department of Commerce against including wood packaging materials and unassembled components in potential tariffs stemming from its Section 232 investigation into forest products. In a written submission dated April 1, 2025 , the CWPCA argued that such tariffs would be "unnecessary" and "unwise," given the deeply interconnected nature of the U.S. and Canadian supply chains.

Representing Canadian wood packaging manufacturers for over 50 years, the CWPCA emphasized the critical role Canada plays in supplying both assembled wood packaging and the raw materials needed by U.S. manufacturers. "US based users and manufacturers of wood packaging have long relied on Canada to repatriate unneeded used or pooled platforms to areas of need within the US, to supply new assembled wood packaging that supports US manufacturers in meeting their supply needs and also to supply assembled wood packaging directly to end users," the association stated in its submission.

The CWPCA highlighted the current trade policy that broadly exempts wood packaging materials (WPM) like pallets and crates from duties when moving "under load" as Instruments of International Trade (IIT). They expressed concern that this exemption could be narrowed or reinterpreted, leading to tariffs on both new and reused pallets, as well as those accompanying goods. "If the IIT exemption were removed or restricted, the consequences would be significant for both Canadian pallet manufacturers and broader North American supply chains," the CWPCA warned.

To prevent such disruptions, the association urged the U.S. to permanently recognize all wood packaging as IIT, regardless of ownership or load status. They argued that pallets are durable, essential for trade, and constantly redistributed within the logistics cycle. "Applying tariffs to the cross-border repositioning of empty pallets would effectively tax the physical infrastructure of trade, creating artificial costs and discouraging reuse," the CWPCA contended.

Furthermore, the CWPCA raised significant concerns about potential tariffs on unassembled wood packaging components, which U.S. manufacturers rely on. These "precut" components, often softwood and already subject to Anti-Dumping (AD) and Countervailing Duties (CVD) under the Softwood Lumber Agreement, would face dramatically increased costs if an additional 25% tariff were applied. "The addition of the 25% tariff to the existing (and forthcoming) AD and CVD has the potential to drive cost by up to 60% for some producers and exporters," the CWPCA cautioned.

The association stressed that increased costs on wood packaging and its components would inevitably trickle down to consumers, affecting the price of everyday goods. They called for the U.S. Department of Commerce to exempt precut components, particularly softwood varieties shipped under specific Harmonized Tariff Codes, from any pending tariffs. "These components are critical for manufacturers of wood packaging. Absolutely essential in fact," the CWPCA concluded, emphasizing the potential for significant supply chain disruption and economic repercussions across North America .

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Read full text of the public communication here: https://downloads.regulations.gov/BIS-2025-0011-0114/attachment_1.pdf

View Regulations.gov posting on April 10, 2025 , and docket information here: https://www.regulations.gov/comment/BIS-2025-0011-0114

TARGETED NEWS SERVICE (founded 2004) features non-partisan 'edited journalism' news briefs and information for news organizations, public policy groups and individuals; as well as 'gathered' public policy information, including news releases, reports, speeches. For more information contact MYRON STRUCK , editor, editor@targetednews.com, Springfield, Virginia ; 703/304-1897; https://targetednews.com